As the degree of flexibility offered to investors for office leasing has increased over the past years, so has its demand. With the increasing demand, the office rentals have also seen an upward trend, especially for the commercial spaces in Gurgaon which has a thriving market for startups in the country. JLL, a global real estate firm in its special report in association with Confederation of Indian Industry (CII), “India’s Real Estate Milestones- a 20-year narrative” states that India’s real estate market will make a huge comeback in 2018. Also, the first half of the year 2018 recorded investment in real estate to be as high as 3,616 million US Dollar (INR 24,011 crores). Companies have leased approximately 8 million square feet more space as compared to the first half of 2017, leading to total gross space leased from January to June 2018 to 24 million square feet. The cities which had the highest share in the growth rate were Bengaluru and NCR.
Your commercial address will surely affect your business reputation and therefore choosing a location solely based on rent isn’t a part of successful business venture. Here are some of the best tips to help you manage your finances in a cost effective manner.
Local Regulations Favouring Startups
You must know about any local regulation, restricting your business growth. Local rules usually favor large companies which have been dominating the business area for a long time. The approach makes it difficult for startups to flourish in the ever-rising competition and gain a seating. Companies must avoid areas with excessive rules and laws for businesses.
Instead, it will be a profitable task if you could look for the area or zone where the government and the policymakers motivate the businesses to flourish and provide a level playing field. Also, there are many areas where the government provides huge incentives for business development for the development of the local economy. It, therefore, becomes important to assess the local tax structure and licensing regulations.
Proximity To Civic Amenities
It will be convenient for the employees as well as will be favorable for the company if the location is near hospital, mall, and residential area and is easily accessible via public transport. The area that the company is located in can either be an advantage or disadvantage. Employees would like to work at a place where the staffing needs can be met easily. Company’s nearness to basic facilities is an important factor determining its workforce base. Investors might find the infrastructure attractive enough to draw people’s attention towards the company but lack of public provisions might drive people away from the location.
Consider Co-working Commercial Space
In case you have a limited employee base and planning to relocate your office or have a startups, a good option to consider will be co-working spaces. Investing in a co-working space is not only fruitful but also trending. You will need to pay for the limited space for the time you use it at affordable rent. You will not have to worry about infrastructure, networking, cleaning and furniture. Also, co-working will allow your employees to stay connected and work as an efficient team.
Negotiating The Lease
This is one of the most important but often overlooked parts to find the best location for your business at the right prices. It will be beneficial if you could connect with the people in similar business and get the in-depth knowledge about the pitfalls and things to be necessarily considered. Experts say, it is necessary to interview the landlord as hard as possible, the deal is similar to marriage- a lifetime investment. In case if you are not looking for commercial space in your city, you should consider taking help from a local real estate professional who will understand the local needs and the local market.
Selecting the best location for your business is a cumbersome task. It is necessary that you consider each aspect of the location you finally decide upon as your business address. Therefore it becomes necessary not to rush and take the required time for before making the ultimate pick.